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Firm and employee effects of an enterprise information system: Micro-econometric evidence


  • Jones, Derek C.
  • Kalmi, Panu
  • Kauhanen, Antti


We investigate the impact of adopting an Enterprise Resource Planning (ERP) system in a retail chain and find interesting parallels between firm and employee outcomes. Concerning performance: (i) sales and inventory turnover initially drop by 7% and recover in 6-12 months; (ii) inventory turnover recovers more quickly for establishments adopting ERP later; and (iii) broader training produces faster sales recovery. Concerning employee outcomes, initially work intensifies, but in time employee outcomes improve. An implication for practitioners is that ERP success is best evaluated only when sufficient time has elapsed after implementation. Employers need to be aware that measures to minimize negative outcomes associated with implementation of enterprise information systems may be needed.

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  • Jones, Derek C. & Kalmi, Panu & Kauhanen, Antti, 2011. "Firm and employee effects of an enterprise information system: Micro-econometric evidence," International Journal of Production Economics, Elsevier, vol. 130(2), pages 159-168, April.
  • Handle: RePEc:eee:proeco:v:130:y:2011:i:2:p:159-168

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    References listed on IDEAS

    1. Plaza, Malgorzata & Rohlf, Katrin, 2008. "Learning and performance in ERP implementation projects: A learning-curve model for analyzing and managing consulting costs," International Journal of Production Economics, Elsevier, vol. 115(1), pages 72-85, September.
    2. Erik Brynjolfsson & Lorin M. Hitt, 2000. "Beyond Computation: Information Technology, Organizational Transformation and Business Performance," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 23-48, Fall.
    3. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002. "Information Technology, Workplace Organization, and the Demand for Skilled Labor: Firm-Level Evidence," The Quarterly Journal of Economics, Oxford University Press, vol. 117(1), pages 339-376.
    4. Chang, Man-Kit & Cheung, Waiman & Cheng, Chun-Hung & Yeung, Jeff H.Y., 2008. "Understanding ERP system adoption from the user's perspective," International Journal of Production Economics, Elsevier, vol. 113(2), pages 928-942, June.
    5. Maryellen R. Kelley, 1994. "Productivity and Information Technology: The Elusive Connection," Management Science, INFORMS, vol. 40(11), pages 1406-1425, November.
    6. Hansen, Christian B., 2007. "Asymptotic properties of a robust variance matrix estimator for panel data when T is large," Journal of Econometrics, Elsevier, vol. 141(2), pages 597-620, December.
    7. Motwani, Jaideep & Mirchandani, Dinesh & Madan, Manu & Gunasekaran, A., 2002. "Successful implementation of ERP projects: Evidence from two case studies," International Journal of Production Economics, Elsevier, vol. 75(1-2), pages 83-96, January.
    8. Botta-Genoulaz, Valerie & Millet, Pierre-Alain, 2006. "An investigation into the use of ERP systems in the service sector," International Journal of Production Economics, Elsevier, vol. 99(1-2), pages 202-221, February.
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    Cited by:

    1. Ram, Jiwat & Corkindale, David & Wu, Ming-Lu, 2013. "Implementation critical success factors (CSFs) for ERP: Do they contribute to implementation success and post-implementation performance?," International Journal of Production Economics, Elsevier, vol. 144(1), pages 157-174.
    2. Bartholomew Watson, 2011. "Barcode Empires: Politics, Digital Technology, and Comparative Retail Firm Strategies," Journal of Industry, Competition and Trade, Springer, vol. 11(3), pages 309-324, September.
    3. Sáenz-Royo, Carlos & Salas-Fumás, Vicente, 2014. "Long- and short-term efficiency in an automobile factory: An econometric case study," International Journal of Production Economics, Elsevier, vol. 156(C), pages 98-107.


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